The document discusses various business growth strategies for small businesses. It identifies the main axes of business growth as products and markets. Some common growth strategies discussed include market penetration, market expansion, product expansion, and diversification. Additional strategies mentioned are market segmentation, partnerships, and utilizing alternative marketing channels. The presentation is given by several group members and defines the different types of diversification a business can pursue, such as horizontal, vertical, concentric, and conglomerate diversification.

2. Topic: Business Growth
Strategies

3. Group Members
• Shamraiz Ahmed
• Rizwan Ahmed
• Hasan shabbir
• Irfan Ahmed

4. Definitions
Definition Business Growth strategy:
Business growth strategies are strategies you can use to increase
the size of your business. The best business growth strategies for
your business will grow your business top line and bottom line
over the long-term…

5. In Business Growth
There are two main Axes:
 Product
Which products do you currently offer, and which new
products would you like to offer in the future?
 The Market
Which markets do you currently serve, and which markets
would you like to serve in the future?

6. Growth strategies in Business
There are some common growth strategies in Business:
 Market penetration
 Market expansion/Development
 Product expansion/Development
 Diversification

7. Market Penetration Strategy
One growth strategy in business is market penetration. A small
company uses a market penetration strategy when it decides to
market existing products within the same market it has been
using.

8. Market Expansion or Development
A market development strategy pertains to promotion of existing
products or services to new customers, or launching them in a new
geographical area. It might be that your usual market has been
saturated or you’re struggling to attract new customers or clients in
your local region.

9. Next presenter:
SHAMRAIZ AHMED

10. Product Expansion or Development
Small businesses can benefit hugely from expansion of product
lines or adding new features to appeal to their existing markets.
You may be experiencing a lull in sales or profits due to outdated
technology or outmoded products. If so, it could be time to
expand your product line.

11. Growth Through Diversification
• Growth strategies in business also include diversification, where a
small company will sell new products to new markets. This type of
strategy can be very risky. A small company will need to plan
carefully when using a diversification growth strategy.

12. Next presenter:
IRFAN AHMED

13. Diversification may be divided into further
categories
 HORIZONTAL DIVERSIFICATION
 VERTICAL DIVERSIFICATION
 CONCENTRIC DIVERSIFICATION
 CONGLOMERATE DIVERSIFICATION

14. HORIZONTAL DIVERSIFICATION
• This involves the purchase or development of new products by the
company, with the aim of selling them to existing customer
groups. These new products are often technologically or
commercially unrelated to current products but that may appeal
to current customers. For example, a company that was making
notebooks earlier may also enter the pen market with its new
product.

15. VERTICAL DIVERSIFICATION
• The company enters the sector of its suppliers or of its customers.
For example, if you have a company that does reconstruction of
houses and offices and you start selling paints and other
construction materials for use in this business.

16. CONCENTRIC DIVERSIFICATION
• Concentric diversification involves the development of a new line
of products or services with technical and/or commercial
similarities to an existing range of products. This type of
diversification is often used by small producers of consumer
goods, e.g. a bakery starts producing pastries or dough products.

17. CONGLOMERATE DIVERSIFICATION
• Is moving to new products or services that have no technological
or commercial relation with current products, equipment,
distribution channels, but which may appeal to new groups of
customers. The major motive behind this kind of diversification is
the high return on investments in the new industry. It is often used
by large companies looking for ways to balance their cyclical
portfolio with their non-cyclical portfolio.

18. Next presenter:
RIZWAN AHMED

19. Further More strategies
 Market segmentation
 Partnerships
 Alternative channels

20. Market segmentation
• Another of the small business growth strategies is market segmentation.
This simply means to divide your market into various groups (segments)
according to customer preferences, interests, locations and other
characteristics. These segments allow you to create targeted campaigns
according to specific variables, giving the campaigns a much higher
chance of success. Typical segments are:
• Geographic
• Demographic
• Behavioural
• Psychographic

21. partnership
• Sometimes joining forces with another business is the most viable
method of growing your small business. You might choose to do
this though mergers, acquisitions or partnerships with other
businesses.

22. Alternative channels
• Utilising alternative channels is one of the best methods of growth
in business. Many small businesses already use more than one
online platform for marketing, but sometimes switching platforms
achieves better results.
• The top three marketing channels are email marketing, social
media and business websites. 54% of small businesses use email
and 48% use social media

23. Based on the strategies used and its ambitions, a
company can choose one of these four strategies.
This choice especially depends on the approach of
a company's product/market and the latter's taste
for risk.
THE END

24. Any Question all of you